Myths, Fables & Fairy Tales

6 myths about the Detroit 3


BY MARK PHELAN • FREE PRESS COLUMNIST • November 17, 2008

The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists.
Here are six myths about the companies and their vehicles, and the reality in each case.

Myth No. 1
Nobody buys their vehicles.

Reality
General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of about 560,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000 more than Toyota.
Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year.
Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.

Myth No. 2
They build unreliable junk.

Reality
The creaky, leaky vehicles of the 1980s and '90s are long gone. Consumer Reports recently found that "Ford's reliability is now on par with good Japanese automakers." The independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo.
Power rated the Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford Fusion scored better than the Honda Accord and Toyota Camry.

Myth No. 3
They build gas-guzzlers.

Reality
All of the Detroit Three build midsize sedans the Environmental Protection Agency rates at 29-33 miles per gallon on the highway. The most fuel-efficient Chevrolet Malibu gets 33 m.p.g. on the highway, 2 m.p.g. better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient non-hybrid Honda Civic.
A recent study by Edmunds.com found that the Chevrolet Aveo subcompact is the least expensive car to buy and operate.

Myth No. 4
They already got a $25-billion bailout.

Reality
None of that money has been lent out and may not be for more than a year. In addition, it can, by law, be used only to invest in future vehicles and technology, so it has no effect on the shortage of operating cash the companies face because of the economic slowdown that's killing them now.

Myth No. 5
GM, Ford and Chrysler are idiots for investing in pickups and SUVs.

Reality
The domestic companies' lineup has been truck-heavy, but Toyota, Nissan, Mercedes-Benz and BMW have all spent billions of dollars on pickups and SUVs because trucks are a large and historically profitable part of the auto industry. The most fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA fuel economy ratings than Toyota and Nissan's full-size pickups.

Myth No. 6
They don't build hybrids.

Reality
The Detroit Three got into the hybrid business late, but Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009.

ANOTHER Stimulus Package?

Want to fix the economy quick? Here's how:

Everyone wants a new car!



What's the 1st thing lottery winners do?



They buy a new car!
Americans love new cars and will buy one given almost any excuse to do so.
We can fix the economy, and bailout Detroit by simply giving the car industry a good swift kick!

For starters - blowing cash around and running up the national debt even higher could well be less than bright, however this seems inevitable, so let's make sure it works this time.

The 1st stimulus package did nothing because it wasn't targeted, so the only thing that seemed to enjoy any product movement were flat screen TV's none of which are made in the United States.

Consider this:

The raw (manufacturing) cost of motor vehicles is around 65% total (including suppliers to tier 4) therefore the average unit produces an initial $13,500 in W-2 income which becomes up to $65,000 by years end due. (This isn't "magic" - it's simply how the economy works.)

Instead of a check, lets send everyone a voucher good for up to $1000 on the domestic content of a new motor vehicle.


Seeing as not everyone needs a new car, let us sell the vouchers, give them away, etc. (They would probably be all over EBay) and allow people to use as many as they could acquire, up to the full MSRP of a new vehicle.

Environment
This would freshen the national fleet;reducing emissions & increasing overall miles per gallon

Jobs
Creates more employment than any other industry, while targeting the areas of highest unemployment and foreclosure.

Strengthens the Dollar
By decreasing the number of dollars going offshore, our dollar becomes worth more reducing what we pay for other imported goods, including gas!

Nothing happens in this country until someone sells something; that is when new money enters the system.

The economy would revive in under 180 days under such a plan.

If you've read this far, thank you!
Should you still have misgivings please consider the following:

The Democrats won, and they owe the UAW (either in part or a lot!) for their national victory and several house races too. They will do something to protect that constituency and you can be sure of that.

Should you be laboring under the impression that Detroit(inc) continues to build the junk they used to - well they just don't!
Read this -> Myths about Detroit's Big 3

Time to replace our bumperstickers

Replace this:



With this:

Not as blue as some would have you believe

2008 Presidential Election by state:






2008 Presidential Election by county:

Bush on Election Results

"All Americans Can Be Proud Of The History That Was Made Yesterday"



President Bush Congratulates President-Elect Barack Obama, Says He "Can Count On Complete Cooperation From My Administration As He Makes His Transition To The White House"

"This Moment Is Especially Uplifting For A Generation Of Americans Who Witnessed The Struggle For Civil Rights With Their Own Eyes"

President George W. Bush:
"Across the country, citizens … showed a watching world the vitality of America's democracy, and the strides we have made toward a more perfect union." "And they chose a President whose journey represents a triumph of the American story – a testament to hard work, optimism, and faith in the enduring promise of our Nation."

"Many of our citizens thought they would not live to see that day." "This moment is especially uplifting for a generation of Americans who witnessed the struggle for civil rights with their own eyes – and four decades later see the dream fulfilled."

"Last night, I extended an invitation to the President- elect and Mrs. Obama to come to the White House." "Laura and I are looking forward to welcoming them as soon as possible."

"I know millions of Americans will be overcome with pride at this inspiring moment that so many have awaited so long." "It will be a stirring sight to watch President Obama, his wife Michelle, and their beautiful girls step through the doors of the White House for the first time. … I know Senator Obama’s beloved mother and grandparents would have been thrilled to watch the child they raised ascend the steps of the Capitol – and take his oath to uphold the Constitution of the greatest nation on earth."

President Bush: "The American people will always be grateful for the lifetime of service John McCain has devoted to this Nation." "And I know he will continue to make tremendous contributions to our country."

"I Told The President-Elect He Can Count On Complete Cooperation From My Administration As He Makes His Transition To The White House"

President Bush: "During this time of transition, I will keep the President-elect fully informed on important decisions." "There's important work to do in the months ahead, and I will continue to conduct the people's business as long as this office remains in my trust."

"I told the President-elect he can count on complete cooperation from my administration as he makes the transition to the White House." "We're embarking on a period of change in Washington, yet there are some things that will not change. The United States government will stay vigilant in meeting its most important responsibility -- protecting the American people. And the world can be certain this commitment will remain steadfast under our next Commander-in-Chief."